Dangote Refinery Condemns PENGASSAN Over Crude Supply Shutdown Threat

The management of Dangote Petroleum Refinery has strongly criticized the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over its directive to cut off crude oil and gas supply to the refinery, describing the move as “a brazen display of lawlessness and criminality.”

In a statement released on Saturday, the refinery said no Nigerian law gives the union the power to interfere with or halt crude and gas supply contracts between Dangote Refinery and its vendors. The company called on the Federal Government and security agencies to step in immediately to prevent what it described as “economic sabotage that could inflict harm on all Nigerians.”

According to the management, PENGASSAN’s directive is illegal, disruptive, and capable of plunging the country into fuel shortages. “Those supply contracts were not entered into with PENGASSAN; they were entered into by Dangote Refinery with third-party vendors and suppliers. PENGASSAN has no right whatsoever to disrupt and/or interfere with the performance of those contracts,” the statement read.

The refinery further warned that the union’s action would affect the availability of key products such as petrol, diesel, aviation fuel, kerosene, and cooking gas, which are used across the country.

‘Economic Sabotage’ And Threat To National Supply

Dangote Refinery stressed that PENGASSAN’s planned action amounted to economic sabotage on multiple levels, warning that the disruption of crude and gas supply would halt production and create nationwide scarcity. “In plain language, PENGASSAN has directed its branches to disrupt and stop the supply of petroleum products from the Dangote Refinery to Nigerians,” the company said.

It added that the implications of the directive would not only threaten energy security but also reduce government revenue. “Dangote Refinery is one of the largest contributors to the revenue purse of the Nigerian governments, both Federal and sub-nationals. That contribution is currently threatened by PENGASSAN and would, of course, be paused if and as soon as the directive is implemented by its branches,” the management noted.

The company warned that stopping production would have a direct impact on aviation, road transportation, and household energy consumption, putting additional pressure on an economy already battling inflation and fuel price volatility.

Call For Government Intervention

Describing the situation as “a potential descent into anarchy,” Dangote Refinery urged the Federal Government and relevant security agencies to intervene and prevent the enforcement of PENGASSAN’s directive. “The association must not be allowed to ride roughshod over Nigerians. The repercussions from the PENGASSAN directive would affect and inflict harm on all Nigerians,” the statement added.

The refinery accused PENGASSAN of abandoning legal channels barely hours after vowing to take the company to court. “It is instructive that no sooner had the Association issued the Press Release than it abandoned the path of lawfulness and embraced criminal conduct and the path that leads to mayhem and anarchy by issuing the directive,” the company said.

PENGASSAN, on its part, had accused Dangote Refinery of disengaging unionised workers and embarking on “a mission of misinformation and propaganda” instead of engaging meaningfully with the union. The union instructed its members to cut off crude oil and gas supply immediately and halt all loading operations for vessels headed to the refinery.

With tensions rising, industry stakeholders are closely watching whether the Federal Government will mediate before the standoff escalates into a nationwide fuel supply crisis.